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Services PMI zooms to four-month high at 52.2 in May as new domestic, foreign orders pick up

India's services industry surged to a seven-month high of 52.2 in May amid a steady rise in domestic and foreign orders rose, helping firms to create jobs at the fastest pace in nearly four years, a private business survey showed on Monday.

Service PMI - File Photo

New Delhi :

India's services industry surged to a four-month high of 52.2 in May amid a steady rise in domestic and foreign orders rose, helping firms to create jobs at the fastest pace in nearly four years, a private business survey showed on Monday.

The Nikkei/IHS Markit Services Purchasing Managers' Index rose to a four-month high of 52.2 in May, from April's 50.2. A reading above 50 indicates expansion.

A sub-index on new business, an indicator of domestic and foreign demand, picked up to 51.6 from 50.4 i

Taken together, they pushed the composite PMI, which includes both manufacturing and services, to 52.5 in May from 51.3, its highest in seven months.

Input prices rose for a ninth consecutive month but at a slower pace than in April. Companies were able to pass on only a small part of that to customers, pointed to continued pressure on profit margins.

The pace of new hiring also rose sharply, reaching its highest level in nearly four years, after companies cut staff only.